Fitch Downgrades Grocers

NEW YORK CITY-Ratings firm Fitch has downgraded its outlook on both the Albertsons and Kroger supermarket companies to negative from stable and has reaffirmed its negative rating of Safeway. All three are rated “BBB.” “The negative outlook reflects the long-term pressures facing the supermarket sector and the expectation that the weakened operating results could persist,” the reports say, mentioning that discounters, dollar stores and drug retailers are competing with grocers in their sector.

The report says that the 1,747-unit Albertsons’ “market share has eroded,” but also points out that the Boise, ID-based company has tried to improve performance by selling underperforming units and investing in prototypes.